PARtNERiNG FOR GlObAl DEvElOPMEN

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					  Partnering for
Global Development




  the evolving links between Business
and International development agencies
Final Draft
                           About BCLC
                           The Business Civic Leadership Center (BCLC) is a 501(c) 3 affiliate of
                           the U.S. Chamber of Commerce, the world's largest business
                           federation. BCLC is the U.S. Chamber's resource and voice for
                           businesses and their social and philanthropic interests.


BCLC's mission is to promote better business and society relations and improve long-term
social and economic conditions by:
   Communicating the U.S. private sector's unique and valuable contributions
   Cultivating strategies and practices that achieve positive results
   Coordinating public-private partnerships (PPPs) and coalitions


BCLC works with leaders from the business, government, and nonprofit sectors to address and
act on shared goals. Our overarching goal is to help build good will, good relations, and good
markets by focusing on issues that affect businesses from a social and economic standpoint.




                     About Corporate Citizenship
                     Corporate Citizenship is a management consulting firm, with offices in the US
                     and the UK. Corporate Citizenship offers clients around the world unrivalled
                     breadth and depth of experience in corporate responsibility. Since 1997, it
                     has advised leading multi-national corporations on how to enhance and align
their citizenship and mainstream business activities to create strategic business value on the
ground in more than 40 developing countries, and has advised over 100 leading multi-national
corporations from many industries, clients include Unilever, Cadbury, Abbott Laboratories,
Citigroup, Vodafone Foundation, and Molson Coors. Additionally, Corporate Citizenship
manages LBG, a corporate community involvement management tool and a network of
companies working together to assess what they invest into the communities where they
operate, to evaluate what this achieves, both for the causes they support and for the company,
and to report more effectively.




Partnering for Global Development –BCLC and Corporate Citizenship                                   2
Table of Contents


Glossary of terms .......................................................................................................................................... 4

Scope and methodology ............................................................................................................................... 5

Executive summary....................................................................................................................................... 6

IDA approaches to working with the private sector....................................................................................... 8

    What is the private sector? ....................................................................................................................... 8

    Drivers for engagement with business ..................................................................................................... 8

    Multilateral institution initiatives ................................................................................................................ 8

    What motivates IDAs to outreach to corporations? .................................................................................. 9

    Where IDAs operate and their priority regions ......................................................................................... 9

    Financial commitment............................................................................................................................. 10

Types of corporate engagement ................................................................................................................. 10

    How IDAs engage the corporate sector.................................................................................................. 12

    Who agencies work with ......................................................................................................................... 16

    Extent of collaborations .......................................................................................................................... 17

    Measuring results ................................................................................................................................... 17

Challenges .................................................................................................................................................. 18

For further exploration................................................................................................................................. 19

Appendix 1: Individual IDA Case Studies and Review of China and Private Sector Partnerships............. 21

Appendix 2: Overview of IDAs and their collaborations with the private sector and corporations............. 29

Appendix 3: IDA Contact Information......................................................................................................... 37




Partnering for Global Development –BCLC and Corporate Citizenship                                                                                             3
Glossary of terms



AFD                  Groupe Agence Française de Développement
BoP                  Base of Pyramid
CSR                  Corporate Social Responsibility
DANIDA               Danish International Development Organization
DFID                 Department for International Development
DMV/HH               Dutch Humanitarian Aid / Ministry of Foreign Affairs
ERR                  Economic Rate of Return
GDA                  Global Development Alliance (USAID’s office for partnerships)
GTZ                  Deutsche Gesellschaft für Technische Zusammenarbeitz
IDA                  International Development Agency
JICA                 Japan International Cooperation Agency
MCC                  Millennium Challenge Corporations (United States)
MDG                  Millennium Development Goals
MNC                  Multinational Corporations
PPP                  Private Sector Partnerships
SDC                  Swiss Agency for Development and Cooperation
SIDA                 Swedish International Development Corporation Agency
USAID                United States Agency for International Development




Partnering for Global Development –BCLC and Corporate Citizenship                    4
Scope and methodology

This report provides a first ever overview of diverse international development agencies’ (IDAs) strategies
for partnerships with multi-national corporations (MNC). This report aims to help MNCs understand how
IDAs operate and how they work with businesses to create effective partnerships in developing countries.
The report highlights key trends, the ways different development agencies partner with the private sector,
opportunities for companies to take the initiatives for partnerships, and includes some general advice on
how companies can engage with IDAs.


For the purposes of this report, we define businesses as multinational corporations. International
development agencies are defined as bilateral government agencies which provide overseas
development assistance to developing countries. This report is not meant to be an in-depth review of
individual agencies and their strategies. Rather, it focuses on the relationship between IDAs and
corporations and how IDAs engage corporations on mutually shared goals to address the development
agenda. It is also not meant to be a detailed guide for businesses on how to partner with individual IDAs,
although general information about their programs is included. Instead we are seeking to provide a
starting point to identify opportunities for partnership between the sectors and identify the role of IDAs
seeking to engage with MNCs. The methodology included:
   Benchmarking of the approaches to partnerships for 10 International Development Agencies: AFD,
    DANIDA, DFID, DMV, GTZ, JICA, MCC, SDC, SIDA, and USAID. We selected a range of
    development agencies from Europe, the US and Asia as a representative sample of global
    institutions. Research was based on publicly available information in English. (For the complete
    names of these agencies please see the Glossary of Terms).
   Interviewing five agencies. We interviewed USAID, MCC, DFID, JICA, and SIDA to further our
    understanding of the agencies’ approaches to working with the private sector. We selected a range of
    development agencies to interview as a representative sample of global institutions at different stages
    of engaging corporations.


A special section on China is also included. China does not have an IDA; however, given the country’s
growing importance in the global economy and in developing and emerging markets, we reviewed the
Chinese government’s engagement with businesses in developing countries.


Appendix 1 provides an overview of IDA’s, and includes a snapshot of their overall approaches as well as
their private sector and corporate strategies. Appendix 2 provides individual agency pages for DFID,
JICA, MCC, SIDA and USAID’s GDA. These pages are based on interviews held with the agencies and
provide more insight into the agencies approaches for working with corporations. Appendix 3 provides the
IDA contact information.



Partnering for Global Development –BCLC and Corporate Citizenship                                            5
Executive summary

74% of all overseas development assistance is provided by the 10 International Development Agencies
                                  *
(IDAs) surveyed for this report ; and according to a 2009 Business Civic Leadership Center survey,
multinational corporations (MNCs) contribute $3.5 billion in overseas development assistance. In fact,
depending on how in-kind contributions are calculated, multinational companies, if they were a country,
would rank in the top 20 of the largest overseas aid providers globally.


With the growing importance of providing assistance to developing and emerging markets from both IDAs
and MNCs, BCLC wanted to better understand the relationship between the two sectors. The focus of the
research is to help corporations understand how IDAs operate and how they work with businesses to
develop effective partnerships. Our review of the IDAs produced the following key findings:


IDA sector outreach to MNCs is a relatively new phenomenon.
          Since 1999, all of the ten leading International Development Agencies (IDAs) have embraced
           some type of private sector initiative, and the majority of them also engage with multinational
           companies. While historically focused on working with governments, IDAs have increasingly
           recognized the importance of private, public, and nonprofit sectors in developing and emerging
           markets’ social and economic development. In the late 1990’s and early 2000’s agencies began
           to expand their private sector engagement approaches to include MNCs and look to them as a
           partners in development.
Public-private partnerships are becoming an increasingly important strategy for emerging market
development.
          Looking across diverse development agencies (and China) and their engagements with MNCs
           there is a strongly established consensus that the development agenda cannot go forward unless
           the two sectors are working together in a systematic way.
IDAs are motivated by both the development and the business agendas.
          While the primary objective of engaging corporations in partnerships is to enlist corporate support
           for development goals and objectives, development agencies recognize that business can be an
           important agent for economic development and can address development issues including
           human rights, and occupational health and safety.
          Many IDAs see a corporation’s market driven program as an opportunity to broker partnerships
           and to help a company understand the local country context.




*
    Source: OCED Annual Stats for 2009. This figure does not include China because China is not an OCED member.



Partnering for Global Development –BCLC and Corporate Citizenship                                                 6
IDAs still have significant “growing pains” in terms of developing public-private partnerships.
       Many IDAs still have not created accessible information, communication or coordination systems.
        It is difficult for private companies to determine “who is responsible for what” and appropriate
        ways to engage.
       The amount of capital available for public-private partnerships is murky, and rules for how capital
        is leveraged are not standardized or well communicated.
       IDAs struggle between finding the balance between partnering and co-investing with companies
        to achieve public goods that deliver private sector benefits.
IDAs' approaches to partnership process are evolving.
       There have been two approaches to engaging corporations—top down and bottom up. Agencies
        such as DFID began engaging MNCs in global partnerships to address specific issues, such as
        its Extractive Industries Transparency Initiative (EITI), whereas USAID established country-level
        alliances to address specific country-level development issues and local corporate needs. IDA
        strategies are now beginning to converge and several have both global initiatives and local
        programs.
       The two primary means by which IDAs partner with corporations are through public-private
        partnerships and by acting as a strategic advisors or brokers with other aid agencies.
Partner identification is a key issue.
       IDAs do not state preferences to specific industries. Instead they emphasize finding the right
        partner to create successful partnerships which help achieve development goals and objectives.
        However, one of the chief hurdles to fostering collaborations is identifying the right partner – an
        organization which shares similar goals and objectives.
IDAs' programs often support and build upon existing multilateral initiatives.
       Many of the agencies are building on other multinational initiatives (such as the UN MDGs) and
        are working with corporations to help them navigate and address these multinational initiatives.
        However, the challenges facing IDAs whose MNC partnership programs are newer are how to
        make the strategies operational, build effective partnerships and create sustainable results.
There is often a disconnect between countries with greatest need and where MNCs invest.
       IDAs are open to promoting partnerships wherever they operate. However, Sub-Saharan Africa
        is a priority region for most agencies. It is also the continent which has the least MNC presence.
There are success stories.
       USAID has leveraged over $9 billion with over 680 alliances to mobilize investments such as
        water, micro-credit, and agriculture.
       GTZ has had more than 800 projects overall. In Africa GTZ has supported 250 projects, which
        focused on sustainable economic development, through healthcare and agricultural projects.




Partnering for Global Development –BCLC and Corporate Citizenship                                             7
IDA approaches to working with the private sector
What is the private sector?

All the IDAs identified for this research have stated the importance of engaging the private sector in
development, but how the agencies define the private sector influences their policies and programs for
engaging with corporations. Many agencies define the private sector as anything that is not the
government, including nonprofits, civil society organizations, and trade associations, in addition to private
businesses. Furthermore, IDAs may define business to include local micro-enterprises, small and medium
enterprises, national corporations and multinational corporations. This broad definition of the private
sector can create confusion for corporations seeking to partner with a development agency. It is important
to understand each IDA’s specific definition of the private sector and their philosophy toward engagement.
Not all agencies working with the private sector are partnering with MNCs.



Drivers for engagement with business

International Development Agencies recognize the value              Multilateral initiatives
of the private sector – including corporations – in achieving       Business Call to Action aims to help
development goals. Economic growth and private capital              achieve the UN’s Millennium
                                                                    Development Goals by encouraging
are key instruments for poverty reduction and play an               companies operating in or trading with
important role in improving peoples’ livelihood. Agencies           developing countries to adapt their
                                                                    business models, competencies and
have learned that by engaging the private sector they can           approaches to help improve the lives
improve the local economy through job creation and                  of people through innovation,
                                                                    investment and the creation of decent
business expansion. The direct impact of job creation and           jobs while leveraging their core
business expansion can have a positive ripple effect on             business expertise to realize
                                                                    commercial success.
wider social issues including health and education.                 www.bcta-initiative.org
According to USAID, since the 1960s “public funding of
                                                                    Global Compact is a UN initiative for
development, once the driving force for international               businesses that are committed to
giving, has diminished…even as the total value of                   aligning their operations and
                                                                    strategies with ten universally
overseas development assistance has increased. In                   accepted principles in the areas of
contrast, public-private flows and private capital has              human rights, labor, environment and
                                                                    anti-corruption.
exceeded public funding.” DFID cites that economic                  www.unglobalcompact.org
growth accounts for 80% of the poverty reduction globally
achieved since 1980.


Multilateral institution initiatives
IDAs recognize initiatives being undertaken by other actors, and consider it important to engage with
these initiatives. Many multilateral organizations have global initiatives which engage the private sector,



Partnering for Global Development –BCLC and Corporate Citizenship                                             8
however, the two initiatives with which IDAs most commonly align their corporate initiatives are the UN
Business Call to Action and the UN Global Compact (see side bar for information about these initiatives).


What motivates IDAs to outreach to corporations?
IDAs also recognize certain corporate-driven programs as synergistic opportunities to engage with
corporations. Key corporate initiatives that attract IDAs include general corporate social responsibility
(CSR) and Base of the Pyramid (BoP) or social innovation programs.


CSR programs often address issues such as human rights, health care, the environment, education, and
occupational health and safety. These are often areas which concern development agencies, so
agencies view these types of programs as potential opportunities to engage with businesses on mutual
goals.


Base of the Pyramid and social innovation programs are also
                                                                        About the Base of the
natural connections for IDAs and businesses. By definition, these       Pyramid (BoP)
initiatives are commercially motivated but may also address
                                                                        BoP refers to the poorest socio-
development needs. Social innovation and BoP focus on                   economic group, and refers to
generating new business opportunities within populations at the         the four billion people who live
                                                                        on less than $2 per day,
lowest income levels. By making products or services affordable         typically in developing
to low income people, companies not only capture new markets,           countries.
but also can address pressing social issues, stimulate economic
growth, and provide access to vital goods and services.



Where IDAs operate and their priority regions
                                                                        Creating an enabling
IDA priority regions and countries of operations vary from agency       environment
to agency and are guided by the agency’s strategic priorities
                                                                        Many countries where
which are often determined at the highest levels of the IDA’s           development agencies operate
government. Sub-Saharan Africa is the most common top priority          have weak and/or unstable
                                                                        governments and often lack
region. IDAs often operate in unstable and post-conflict countries      basic infrastructure and
which have weak infrastructure, unstable governments, high              resources which would make
                                                                        their country attractive to
poverty rates and fragile economies. They are also the places           businesses. As a part of an
which are least likely for a broad range of MNCs to operate,            agency’s overall strategy, most
                                                                        IDAs focus on working with
which can make attracting MNC partners for those regions a              governments within the countries
challenge.                                                              to create an environment which
                                                                        is conducive to attracting
                                                                        businesses.




Partnering for Global Development –BCLC and Corporate Citizenship                                           9
Financial commitment
One of the aims of this research was to identify how much financial commitment is allocated to
partnerships with MNCs. However, it is difficult to make comparison amongst development agencies as
some agencies do not publicly disclose their budgets for collaborations with the private sector and MNCs.
Among those which do publicize their budgets, they often report the information in different formats. For
example, USAID reports the total investment on its public-private partnerships, which includes USAID,
civil society organizations, and private sector contributions. GTZ provides public-private partnerships
figures and breaks out the details about its own contributions. DFID does not report a figure for the overall
financial contributions it makes. Rather the activity is spread across a range of separately managed
partnership initiatives.


Types of corporate engagement


The review of IDA engagements with corporations revealed that with the exception of AFD all the
agencies have programs that specifically focus on engaging corporations. However, the agencies are in
different stages of developing their initiatives. Five agencies have well established programs (DAINDA,
DFID, GTZ, MCC and USAID), two agencies are currently developing programs (SIDA and JICA), two
agencies showed some evidence (albeit it was very limited) of corporate programs (SDC and DMV), and
one agency did not have any evidence of corporate programs (AFD).


Established corporate sector programs: Half of the agencies reviewed have established initiatives to
engage the corporate sector. DAINDA, DFID, GTZ, MCC and USAID each have well-defined programs
for engaging corporations which include guidelines on how to partner with the organizations, resources
and tools on developing partnerships, and case studies.


In the mid-late 90s, DFID, GTZ and USAID were the first agencies to establish specific public-private
partnership initiatives and/or departments which included collaborations with MNCs. In reviewing their
early activities with MNCs there seems to have been two different approaches – top down and bottom up.
DFID’s collaborations seem to have begun as issue and sector initiatives, which engaged businesses at
the headquarters to address global standards for working in developing countries. An example of a DFID
initiative is the Ethical Trading Initiative (ETI) which is an alliance of companies, trade unions and
voluntary organizations. ETI works to ensure people working at the beginning of a company’s supply
chain, regardless of industry, are treated fairly and ethically. In contrast USAID took a programmatic,
bottom-up, approach and forged alliances at the local (or country) level to address local development and
workplace issues. An example of a USAID partnership is the Finance Alliance for Sustainable Trade
(FAST) in Latin America which partners with Green Mountain Growers, Starbucks and EcoLogic Finance.
The program increases access financing for farmer cooperatives whose products are eco-friendly. The



Partnering for Global Development –BCLC and Corporate Citizenship                                         10
program links the farmers to buyers such as Green Mountain Coffee Roasters and Starbucks to promote
sustainability.


Furthermore, these agencies actively engage corporations. For example, USAID has a paper on working
with the private sector and MCC will be releasing information soon. Many of them also hold conferences
to engage with corporations to develop partnerships.


Early stages of developing corporate programs: Over the past few years, it has become a strategic
priority for JICA and SIDA to engage corporations in development and they are currently developing
related policies and programs.


In October 2008, JICA established an office of Office for Private Sector Partnership following the merger
of JICA and the Japanese Bank for International Co-operation. In the past few years there have been two
important initiatives which have influenced JICA to focus more closely on partnering with corporations.
The Keidanran (the Japanese Confederation of Business Associations) issued a policy recommendation
for business to increase their involvement in development issues and the ODA Government Panel (the
highest panel on development issues in the Japanese government) issued a paper calling for Base of
Pyramid businesses and strategic CSR. Prior to this, partnering with corporations was not viewed by
JICA as a priority.


SIDA is also developing a formal program for collaborating with corporations. Over the past few years,
engaging with corporations has been gaining importance for the agency. SIDA has prioritized
collaborations with corporations because Swedish businesses have strong CSR initiatives. Additionally,
SIDA recognizes that businesses not only promote economic development and create employment
opportunities but they can contribute to development goals when they address issues of corporate
responsibility such as labor practices, codes of conduct, and health.


Little or no evidence of corporate programs. SDC and DMV showed little evidence of engaging
corporations. A SDC position paper on cooperation with the private sector published in 2004 outlines
SDC’s strategy for engaging the private sector (which includes corporations from industrial nations,
business organizations, and professional associations). However, outside of this document, the SDC
provides no further public information on engagement with corporations.


In 2007, the Dutch Ministry of Foreign Affairs released a development policy note, ‘Our Common
Concern: investing in development in a changing world,’ which expressed the ministry of foreign affairs
interest in engaging Dutch businesses in development. However, very little information about the
programs is provided (in English) about the agency’s engagement with businesses. The note focuses on



Partnering for Global Development –BCLC and Corporate Citizenship                                         11
multi-sector partnerships, with the emphasis on engagement with international organizations, likeminded
donors, governments of developing countries, non-governmental organizations and partnership in
general. Based on the limited information provided it is difficult to ascertain how the DMV implements
engagement with corporations.


AFD showed no public evidence of having established policies for engaging corporations or that they
were in the process of developing any. AFD partnerships with the private sector seem to be focused on
fostering local private sector development to develop local businesses with the goal to generate economic
growth, job creation, and raising incomes. As findings are made on publicly available information, AFD
may have partnerships with corporations and/or may be in the process of developing corporate
partnership programs and have not yet publicized them.



How IDAs engage the corporate sector

The models of engagement with corporations vary from agency to agency, as each agency aims to align
its partnerships with not only the agency goals but the specific goals set by the country where it operates.
However, there are two common approaches that IDAs use to engage corporations: developing
partnerships and acting as strategic advisors.

Partnerships: Partnerships, often called public-private partnerships or alliances, are primarily focused
on creating programs in a specific country to address a development issue. Every agency has different
criteria and expectations aligned with their overall agency strategy; however, there are commonalities
among them.


Common criteria include:
   Partners are expected to share the risk and opportunities, bring their strengths and share financial or
    in-kind contributions.
   Partners should use their core competencies to help address development issues.
   Activities must contribute to the development agenda.
   Proposed partnerships should be relevant to the country’s development policy and needs.


Three examples of IDA’s partnership criteria are:


GTZ “In PPP projects, each partner contributes what it does best: GTZ supplies know-how and contacts,
supports concept-development and financing, coordinates the various measures, and networks with
other important decision-makers – also supra-regionally. Private companies contribute technology,
capital and expertise and are usually responsible for carrying out the projects on site. The partners share
the costs and risks equally.” Furthermore, “every PPP has to comply with the development-policy




Partnering for Global Development –BCLC and Corporate Citizenship                                          12
objectives of the German Government, and that private sector partners is not subsidization, and GTZ
support is only given if the private partner would not otherwise implement the PPP and if the PPP is not a
legal necessity.”


USAID’s Global Development Alliance “is a market-driven approach to alliances between the public
and private sectors to address jointly defined development objectives. Alliances are co-designed, co-
funded, and co-managed by partners so that the risks, responsibilities, and rewards of partnership are
equally shared.” “Alliances must operate in countries where USAID has field missions and must fit within
the strategic objectives of these missions and/or the appropriate Washington operating unit (WOU).
However, broad, multi-country alliances that are addressing priority development issues may operate in
countries where USAID does not have a field mission.”


DANIDA’s B2B Program: “The B2B Program makes it easier to create long-term business linkages
between companies in Denmark and companies in the program countries. The B2B Program funds are
available to support a number of elements within the cooperation’s own activities. The business-to-
business cooperation must be commercially based, and the joint partners take all risks involved. In return,
the companies have the prospects of making a blossoming business. The B2B Program acts solely as a
facilitator and does not function as the implementer of individual cooperation projects. To qualify for
support, the partnership must have a long-term perspective and comply with DANIDA development
objectives and take place in one of the countries to which B2B applies.”




 IDAs which engage in public-private partnerships
                with businesses

DANIDA                        JICA
DFID                          MCC
GTZ                           SIDA
DMV                           USAID



Strategic Advisor /Broker: Development agencies also play the role of strategic advisor and/or brokers.
As strategic advisors, IDAs help companies navigate the development landscape in a developing or
emerging market. As a broker, the development agency often looks for ways to help businesses
collaborate with other players such as multilateral organizations, public agencies and nonprofit
organizations. An example of an agency which acts as a strategic advisor and broker for multilateral
initiatives is DFID and the MDGs.




Partnering for Global Development –BCLC and Corporate Citizenship                                         13
IDA timeline and department which engages corporations

                            Separate                      PPP approach and/or office
      IDA                                                                                                   PPP Budget
                     PPP office or initiatives                   established

    GTZ        Not clear if separate office or                                           1999     $128 million expenditures
               program/initiative within an existing                                              (2008)
               office

    USAID      Global Development Alliance (GDA)                                         2001     $9 billion of combined
                                                                                                  resources are for partnerships,
                                                                                                  agency does not breakout
                                                                                                  corporate /private sector budget

    MCC        Business engagement is integrated                                         2004      Does not provide breakout
               with the overall approach. However                                                 specific for private sector or
               there is a Private Sector Initiatives                                              corporations
               Team
    SDC        Not cited                                                                 2004     No information provided



    DMV        No separate office, however, the                                          2007     No breakdown provided
               initiative is Development
               Cooperation Partners in
               Development
    JICA       Office for Private Sector Partnership                                  October     No information provided
                                                                                        2008
                                                                                              †
    DFID       Business for Development                                      Since the 1990s      No information provided
                                                       Private Sector Development Strategy
                                                                                launched 2009
    SIDA       Department of Development                   In progress of finalizing Fall 2009/   $4 to $5 million projected for
               Partnerships                                                               2010    2010


    AFD        No separate office                      PPP has been apart of their approach       $17.9 million
               PPP staff sits within Environmental                               since 2004       2008 expenses (25% of total
               and Social Support Unit, and                                                       budget, second largest
               focuses on local private sector                                                    percentage and for PPP)
               development
    DANIDA     Department for Business                               No information provided      $3 million but does not break
               Cooperation & Technical Assistance                                                 out corporations within private
                                                                                                  sector budget
                                                                                                  1.6% of total budget (2008)




†
    No specific date provided, information is ascertained by references to programs on DFID’s website.



Partnering for Global Development –BCLC and Corporate Citizenship                                                        14
Partnership Case Studies

USAID Global Development Alliance, the Coca-Cola Company and the Global Environment and
Technology Foundation
Partnership supports water-related projects through the Global Watersheds Partnership Program. $10
million supports projects across eight countries in Asia, Africa, and Latin America and is now
expanding to an additional nine African countries. The alliance has improved hygiene and household
water disinfection for 25,000 underserved residents near Jakarta, Indonesia, and increased access to
clean water for 21,000 people in Mali. A 12-village project in Ethiopia to supply potable water and
improve school sanitation is expected to impact 45,000 people. (Source: USAID Website / Note: The
Coca-Cola Company is winner of USAID’s 2007 GDA of the Year Award.)

USAID Global Development Alliance and Chevron
This project focused on strengthening the agricultural value chain in Angola. It established “ProAgro
Angola” a five-year, $5.5 million program that focuses on four key links: finance, production,
processing, and marketing. As a result of the partnership, over 3,000 small agricultural producers have
organized into 32 associations. More than 3,000 farmers were trained in plant sanitation and
cultivation, and increased their access to wholesalers. Twenty-four producers gained access to loans
to promote production in coffee, bananas, and potatoes. Sales generated $1.2 million in revenues for
suppliers. (Source USAID website)

GTZ and German Coffee Association (Deutsche Kaffee-Verband – DKV)
GTZ/DKV cooperation established a code of conduct called “the Common Code for the Coffee
Community” The code includes social and environmental factors as well as quality improvements
within the international coffee sector. The goal is to create high-quality coffee for the companies on a
long-term basis. At the same time, the living conditions of suppliers, most of whom are small-scale
farmers, are sustainably improved. (Source GTZ website)

        ‡
DFID works to maximize the role of business in development, to tackle poverty and achieve the
Millennium Development Goals in three principal ways:
     Pushing Boundaries - working with business to push the boundaries of business models, using
      innovative business practices and new partnerships to support growth and the achievement of the
      Millennium Development Goals
     Promoting growth - working with governments and business to create the right conditions to let
      business do what it does best, drive growth
     Responsibility - working with business and others to promote successful corporate responsibility.




‡
    Source: DFID website http://www.dfid.gov.uk/About-DFID/Who-we-work-with1/Business/




Partnering for Global Development –BCLC and Corporate Citizenship                                          15
An example of an IDA which links its strategy with business drivers including CSR and BoP, and with
multilateral initiatives is DANIDA’s Innovative Partnerships for Development Programme. DANIDA’s
mission for the Innovative Partnerships for Development (IPD) Programme is “to contribute to reducing
poverty by promoting economic growth and social development in developing countries.” The immediate


 DFID’s corporate collaborations to promote good governance

 In addition to strategic advisors and collaborations on programs, DFID’s focus includes multi-sector
 collaborations to “create new relationships that help economies deliver what the poor need. These
 include tackling inefficiency, poor governance and corruption.” Examples of DFID initiatives:

     The Extractive Industries Transparency Initiative (EITI)
     the Construction Sector Transparency Initiative
     the Medicines Transparency Alliance (MeTA)


objective is to promote better working and living conditions for employees, their families, the local
community and society at large by advancing strategic Corporate Social Responsibility and Socially
Responsible Innovation, and targeting the population at the Base of the Pyramid through innovative
partnerships in developing countries. These objectives are achieved by establishing partnerships within
the framework of the United Nations’ Global Compact and the Millennium Development Goals.


     IDAs which engage in Strategic
            Advisor/Broker

 DANIDA
 DFID
 MCC
 SIDA



Who agencies work with

One of the most important aspects for IDAs when engaging with business partners towards a common
development goal is to identify partners whose objectives and goals are closely aligned with the agencies.
IDAs do not mention a preference to a particular sector or industry rather they are focused on the results
of the partnership, however, some agencies do limit which corporations with whom they will partner. For
example, DANIDA will only work with companies from their home country, and GTZ will only work with
companies which are headquartered in Germany or EU countries. In contrast, USAID and MCC
encourage all businesses to work with them.




Partnering for Global Development –BCLC and Corporate Citizenship                                         16
Agency                                            Restrictions
DANIDA         Local companies, Danish companies, and organizations and public institutions will be
                approved on a case-by-case basis.
               In order to receive a grant from the Public Private Partnership Program a project must
                be within the framework of the United Nation's Global Compact.
               DANIDA will not partner with alcoholic (including beer), tobacco and arms companies.
GTZ            German and European companies only
JICA           Focus being finalized. However, JICA anticipates that the priority will be on Japanese
                companies, or companies with some kind of presence/affiliation with Japan. The will be
                open to partnerships with companies from other countries on a case by case basis.


Extent of collaborations
Despite the relatively short time IDAs have focused on private sector partnerships there are a few
agencies which stand out with the number of private sector partnerships; these include USAID, DANIDA
and GTZ. USAID’s GDA has created 680 alliances and worked with 1,700 individual partners; DANIDA
has had more than 300 partnerships, and GTZ has had more than 800 projects. While the number of
partnerships is impressive, in most cases the information provided includes partnerships with all sectors,
including civil society, trade associations, non-profits organizations and businesses. IDAs do not specify
the number of collaborations with MNCs and it is therefore difficult to determine the overall importance of
collaborating with MNCs based on the number of previous partnerships.


Measuring results
IDAs cite the importance of engaging the private sector in achieving development goals and as a driver
for economic development. However, one area which has not effectively been addressed by IDAs is how
to measure the results of their partnerships. To date, most of the agencies provide the number of
partners, and case studies of successful partnerships which often include simple measurement indicators.
IDAs recognize this is an area which needs improvement. For example, USAID knows their evaluations
conducted to date have focused on the process of alliance building which includes implementation,
governance challenges, perceived value added, differing timelines, and the problem of institutional buy-in.
However, USAID has learned through a formal study of its measurement approaches that evaluations
have not convincingly established early signs of desired development impact and tend to be more
descriptive than analytic. JICA and SIDA, who are at the early stages of developing MNC partnerships,
have also expressed a desire to incorporate measurement as part of their collaboration process.


MCC provides an interesting example of an agency which integrates monitoring and evaluation in their
approach. MCC has a fundamentally different business model then other IDAs (see MCC Agency Page in
Appendix 1 for more information). MCC includes impact evaluations to measure the changes in the well-
being of the project beneficiaries. MCC also developed a tool to measure the Economic Rate of Return
(ERR) of each investment. ERR compares the costs and benefits of a public investment, and includes the
project costs borne by other parties. While neither monitoring and evaluation, nor ERR are specifically




Partnering for Global Development –BCLC and Corporate Citizenship                                         17
designed to measure the results of MCC’s public-private partnerships, it does provide an example of how
an agency aims to measure program results.


USAID and MCC provide insight into how IDAs can evaluate partnerships and measure results. However,
more research is needed to better understand what makes an effective partnership which leads to
sustainable development.


Challenges

IDAs with targeted initiatives to engage corporations articulate their interest and the strategic importance
of developing partnerships, offer general information on their websites about their programs, provide
resources to help explain their approaches, and outline general criteria for working with companies. GTZ
has also held conferences and workshops. However, despite the growing interest in developing
partnerships and the increased demand for information on how to partner, there are still many challenges
to building effective partnerships. Two of the biggest challenges are reconciling the differences between
time horizons and different motivations of the partners. JICA has noted that to keep pace with business
the agency has been asked to develop a system to review partnerships proposals quickly, but JICA also
has to ensure that proper procedures are carried out, and this is a time-consuming process. USAID cites
that the main challenges are understanding and navigating the internal process of a government agency,
and addressing the long-held belief that the private sector does not belong in development.


The challenges identified are as follows:
   Difficulty mapping agency priorities to business priorities can discourage business involvement.
    Agencies mention this obstacle, but do not provide an easy way to understand if agency and
    business goals are aligned.
   Development agencies’ lengthy processes for developing collaborative programs vs. businesses
    shorter time frames.
   Differing priorities and challenges to finding the right engagement.
   Unclear IDA restrictions. Lack of clarity on limitations to their programs makes it difficult to determine
    if the agency is willing to work with a specific business.
   A final observation from the research is that there was very little evidence of collaboration between
    IDAs in their partnership work. This is important particularly at the country level where there are a
    limited number of IDAs and a limited number of active corporations. At the country level it makes
    sense for IDAs to share information on each others’ interests and activities.


Increasingly, collaboration with corporations is viewed by agencies as important to help achieve
development goals. Agencies are open to partnerships if they support the agency’s specific development
goals and objectives. As collaborations with corporations are relatively new, IDAs are still open to new


Partnering for Global Development –BCLC and Corporate Citizenship                                            18
ideas to foster partnerships. Aligning business goals with development goals is possible, however, it can
take time to build a relationship and establish an effective partnership. The research has shown that the
agencies with established corporate engagement initiatives have put considerable effort to communicate
to businesses, yet the information is still relatively general. More specific information about an IDA's goals
and objectives, and criteria for working with businesses, can help companies map their goals and
objectives to the IDAs.



When considering partnering with an international development agency, companies should:

   Research the agency and make sure the company meets the agency’s basic geographical and
    program requirements.
   Identify core business strengths and know what the corporation can bring to the partnerships and
    what it would like to achieve.
   Engage in conversation with the agency centrally or locally, which ever is most appropriate. While
    some partnerships will be developed at the country level, as is the case with USAID and MCC, many
    agencies prefer companies to make the agency headquarters the first stop. This can be most
    effective in determining if there is a potential for partnerships and identify appropriate local country
    representatives.
   Give guidance from the center and empower local managers to identify local partnerships with local
    offices and develop local initiatives.
   Set up reporting systems so you know what is happening around the world.



For further exploration

This report is a first step in brokering partnerships and navigating through various development agencies.
There is more to be done to help foster MNC engagement to address development goals.


Some areas which have been identified for further exploration are:
   Research best-in-class partnerships, to identify what makes successful partnerships and what are
    challenges and lessons learned from both MNC and IDA perspectives.
   Hold a global conference with MNCs, the indigenous private sector and IDAs. Bring together key
    players to develop an ongoing conversation about mapping needs and interests.
   Host in-country conferences with all local actors to identify local partnership opportunities which
    collaborate across agencies and MNCs.
   Building on this report, create a comprehensive guide to further help companies identify opportunities
    to collaborate with IDAs. Include all IDAs from countries including Australia, Canada, and Spain etc.
    This guide will create a resource which provides specific details on specific development agencies’




Partnering for Global Development –BCLC and Corporate Citizenship                                              19
    objectives and their private sector programs to more easily identify partnership opportunities with the
    individual development agency.
   Create an open source database which provides information about where IDAs operate and their
    strategic focus areas (such as health, agriculture, and micro-enterprise) to help companies identify
    opportunities with IDAs around the globe to link country level needs and interests.
   Focus on four to five of the least developed countries (such as Burkina Faso, and Sudan) to identify
    the opportunities for specific initiatives about how IDAs can create incentives for business to engage
    in those countries and research how public-private partnerships lead to increased private sector
    investment in the future.
   Businesses are performance based. Develop a tool which measures the value-added of partnerships
    and the effectiveness of their investment towards addressing development issues and creating
    sustainable results.




Partnering for Global Development –BCLC and Corporate Citizenship                                          20
Appendix 1:
Individual International Development Agency Case
Studies and Review of China and Private Sector
Partnerships




Partnering for Global Development –BCLC and Corporate Citizenship   21
Agency Profile: Department for International Development (DFID)
Country: United Kingdom
In July 2009 the UK government’s Department for International Development (DFID) published a “White
Paper called “Eliminating World Poverty: Building our common Future,” endorsed by the Prime Minister.
The paper set out its development strategy for the life of the government. It reiterated the government’s
commitment to raise aid expenditure to 0.7% of national income by 2013. In 2007/08 its expenditures
were £4.95 billion pounds or $7.92 billion of which 60% was through bilateral programs and 40% thorough
multilateral programs agreed with international agencies such as the EU, World Bank and UN.

The White Paper states clearly and categorically “the private sector is an invaluable part of
development”. In both its bilateral and multilateral programs DFID funds private sector development as
such across the developing world, and has published a separate paper on Private Sector Development
Strategy. It also has a range of initiatives to engage private firms in partnership activities that address
both business and development issues. Some are of a very high level such as the “Business Call to
Action” which challenges companies to develop new core business initiatives in away that that both
contributes to the MDGs and contributes to the success of the business. This has been done in
conjunction with the UN, and over 60 leading multinationals have signed up for this challenge. DFID has
published a paper called “Business for Development” which sets out in full a list of its partnership
activities.

Other partnership initiatives outlined in the publication are focused on major issues or industries and they
include the Ethical Trading Initiative, the UK Remittances Task Force, the Extractive Industries
Transparency Initiative, the Medicines Transparency Alliance and the Food Retail Industry Challenge
Fund. These have tended to be centrally conceived and organized initiatives with clear points of contact
and companies, often at head quarters have worked directly with DFID and other stakeholders and
partners to deliver on them.

With the launch of the Business Call for Action DFID consulted with the corporate signatories and
identified that if it wanted to develop partnerships at the country and local level, a new mechanism for
brokering partnerships would be necessary to account for the fact that companies are very different in
type and have very different business needs in specific markets. It is in the process of setting up a pilot
Business Innovation Facility to create a “knowledge hub,” offer technical assistance and brokering for
companies seeking to extend their core business in ways which will promote development. It will be
launched in early 2010 and, focus of five or six countries for three years before being assessed for a
major scaling up of activity. The creation of this type of interface is responding to company needs to
understand the development community better and more effective means of brokering partnerships on the
ground in diverse countries.




Partnering for Global Development –BCLC and Corporate Citizenship                                         22
Agency Profile: United States Agency for International Development
(USAID)
Country: United States
The United States Agency for International Development (USAID) recognizes that U.S. corporations play
an important role in American foreign assistance and harnessing businesses for development is an
important arm of its strategy. To engage effectively with the private sector and to expand and deepen the
impact of development assistance, in 2001 USAID established the Global Development Alliance (GDA).
The GDA is USAID’s primary facilitating office for private sector engagement. The GDA does not fund
projects, rather, as the name suggests the focus is on building alliances. Private sector partners include
corporations, foundations, and nongovernmental organizations (NGOs) and provide technical leadership
for the agency.

The GDA is the first stop for companies looking to engage with USAID. However, the programs and
budgets are executed at the mission level, and all alliances must be executed in conjunction with the
USAID’s in-country missions. To obtain funding, partners have to first submit a concept paper to the local
mission and then proceed with a full application once the concept has been cleared. There are various
ways a company can approach the GDA. The most common approach is for the GDA to partner with a
company to put together the concept and funding and for a project. The GDA will then issue an RFP for
NGOs and other partners to implement and partner on the project. Each partner is expected to bring their
strongest assets to address jointly defined challenges to the long-term economic and social development
of some of the world's poorest countries. Some of the key private partner requirements are:

   A minimum of one-to-one leverage ratio of resources; partners must clearly specify what each party is
    contributing and indicate the cash value of in-kind support
   Partners must clearly establish up front the interests and objectives of each party.
   Alliances should not simply be matching grants nor should they be grants to organizations that have
    expressed an intention to seek third party partnerships that are not yet formed.
   In general, alliances must operate in countries where USAID has field missions and must fit within the
    strategic objectives of these missions and/or the appropriate Washington operating unit (WOU).
    However, broad, multi-country alliances that address priority development issues may operate in
    countries where USAID does not have a field mission.
   Alliance activities at the country level should actively involve local leadership and local beneficiaries.

Since 2001 there have been 680 alliances formed with over 1,700 distinct partners, leveraging more than
$9 billion in combined public-private sector resources leveraging on average $2.7 of private sector dollars
for every $1 dollar of U.S. taxpayer's money. In general, evaluations conducted to date have successfully
assessed: the “process” of alliance building, implementation and governance challenges; perceived value
added, issues with limited timelines; and the problem of institutional buy-in. However, it may be noted that
these evaluations have not convincingly established early signs of desired development impact and tend
to be more descriptive than analytic.




Partnering for Global Development –BCLC and Corporate Citizenship                                          23
Agency Profile: Japan International Cooperation Agency (JICA)
Country: Japan
Japan International Cooperation Agency (JICA) believes it is important to engage in private sector
partnerships. In the past three years, two key initiatives have prompted JICA to engage corporations. The
first was in 2007 when the Keidanran (the Japanese Confederation of Business Associations) issued
policy recommendation for business to have greater involvement in development issues. This initiative
received positive response from government and JICA. The second was in June 2009, when the
Overseas Development Assistance (ODA) Government Panel issued policy paper calling for base of
pyramid businesses and strategic CSR. The ODA is the highest panel on development issues in the
Japanese government and was chaired by Prime Minister Aso. As a result of the growing pressure, on
October 1, 2008 JICA officially established its Office for Private Sector Partnership, following the merger
of JICA and the Japanese Bank for International Co-operation into one organization.

At the time of this writing, over the past 10 months the office for Private Sector Partnerships has been
preparation mode, conducting research on how to engage with the private sector and engage with
European agencies like DFID and GTZ to develop JICA’s strategy. JICA envisions the department as
“cross cutting” and wants the department to have presence across JICA’s regional departments (e.g. Asia
department, Africa department etc) and “issues” departments (e.g. global environmental dept, human
development department, etc. Currently there is nine staff in the department and the head of the
Department is a Director General.

JICA has identified three approaches to engaging private sector in development. They are:

   Improving infrastructure and environment for business. JICA believes it is essential to create a
    foundation for businesses and encourage dialogue with the business community.
   Public private partnership for “hard” infrastructure projects such as sanitation and roads and “soft”
    infrastructure development such as policy and legal systems.
   “Frontier issues” which will focus on engagement via CSR and BoP. This is a new area for JICA and
    has not yet official been named. Businesses will be able to submit ideas on BoP businesses that
    either engage poor in the supply chain or provide services to address social issues. JICA will pay for
    funding to pilot the idea in the developing world. JICA will have a preference for companies which
    want to collaborate rather than receive funding to support a trial BoP business in a developing country

JICA is still in the process of finalizing its strategy and, while it is not completely decided whether there
will be restrictions about what types of corporations JICA will partner with, it is likely that JICA will focus
on partnering with Japanese companies, or companies with some kind of presence/affiliation with Japan.
For other kinds of partnerships, they will assess each opportunity on a case by case basis.

Currently JICA has reached out to individual companies that they think will be interested in working with
JICA. JICA also participates in quarterly meetings of the Public Private Dialogue Forum which engages
business, government and JICA on development issues. Additionally JICA encourages companies to
approach them if they are interested in collaborative projects. Partnerships are particularly welcome if
funding for collaboration has already been secured and/or the partner has existing program that they want
to build on.




Partnering for Global Development –BCLC and Corporate Citizenship                                           24
Agency Profile: The Millennium Challenge Corporation (MCC)
Country: United States
MCC is a United States Government corporation designed to work with some of the poorest countries in
the world. Established in January 2004, MCC’s mission is to reduce global poverty through the promotion
of sustainable economic growth. MCC is based on the principle that aid is most effective when it
reinforces good governance, economic freedom, and investments in people. .

MCC is led by a Chief Executive Officer - currently Darius Mans - and overseen by a Board of Directors,
which includes the Secretary of State, the Secretary of Treasury, the U.S. Trade Representative, the
Administrator of USAID, the CEO of the MCC and four public members appointed by the President of the
United States with the advice and consent of the U.S. Senate. MCC is responsible for the stewardship of
the Millennium Challenge Account (MCA), which receives funds appropriated by Congress every year.
MCC is a small agency of 300 employees.

MCC’s takes the unique approach that before a country can become eligible to receive assistance, it must
demonstrate a commitment to policies that promote political and economic freedom, investments in
education and health, the sustainable use of natural resources, control of corruption, and respect for civil
liberties and the rule of law, as measured by 17 independent and transparent indicators. A country signs a
Compact which is a multi-year agreement between the MCC and the country which funds specific
programs targeted at reducing poverty and stimulating economic growth.

How MCC engages with the private sector

MCC’s Private Sector team sits in the Department of Policy and International Relations. MCC likens the
organization to an investment firm which rewards performance and results. Participating countries must
achieve certain milestones to become eligible for MCC funding; these milestones relate to characteristics
that also make the country more attractive to the private sector. There are three main ways MCC engages
the private sector:

   Trade and Investment: MCC engage companies which are looking to make commercial investments
    to establish local businesses. Agribusiness, transport and logistics, and other industrial sectors are
    featured in MCC information materials, distributed through roundtables, conferences, and other
    channels.

   Public-Private dialogues: MCC has developed a process for a private sector dialogue to provide a
    forum for the international private sector to identify impediments and potential for their investments.
    MCC countries have an opportunity to address these constraints through compact programs. This
    input can be provided in a number of ways, including seminars, roundtables, one-to-one meetings,
    and in writing, depending on the partner country’s preference.

Public-private collaboration: MCC looks for opportunities to develop public-private collaborations and
recognizes the potential contributions of a wide range of organizations, including U.S. and non-U.S.
private businesses, multinational corporations, small and medium-sized enterprises, business and trade
associations, labor unions, foundations, and philanthropic leaders, including venture capitalists




Partnering for Global Development –BCLC and Corporate Citizenship                                             25
Agency Profile: Swedish International Development Cooperation Agency
(SIDA)
Country: Sweden
The Swedish International Development Cooperation Agency (SIDA) recently prioritized partnerships with
corporations because they believe businesses can not only promote economic development and create
employment opportunities but also they can contribute to development goals through addressing core
issues of corporate responsibilities such as labor practices, codes of conduct, and health.

SIDA’s collaborations with business is a part of its Department of Development Partnerships, which
addresses all of the agency’s cross sector partnerships including those with civil society and local
authorities. The entire department has 100 people of which one person focuses on partnerships with
businesses. However, they expect to add more staff focusing on corporate partnerships in the near future.

SIDA is at the beginning stages of developing a business sector strategy which will focus on two
initiatives:

   Business for Development: whereby SIDA will engage in public private partnerships to support
    businesses actions taken by the different companies to promote sustainable environment, social
    sustainability.
   Business sector delivering social services in collaboration with the development corporation.

SIDA will establish a process and new mechanisms to respond to proposals from companies. However, in
the short term they will review opportunities on a case by case and are open for new ideas. While the
agency has not yet established evaluation criteria, they will be looking for companies which offer
interventions for people and that are focused on lifting people out of poverty. Additionally they will
prioritize companies that are aligned with the Global Compact principles and will focus on collaborations
which have a return on investment.

SIDA will be open to working with non-Swedish companies. SIDA will look for partners which are
interested in countries where SIDA has a presence and which align with the country’s strategic issues. To
illustrate the latter, if a collaboration concept focuses on a health program and a country’s strategy does
not include a health program, then SIDA will not enter into the partnerships. Additionally, SIDA will follow
EU regulations for subsidizing programs for a company.

For the moment SIDA recommends companies interested in partnerships with them to engage with the
Headquarters in Sweden to determine initial suitability for their program.




Partnering for Global Development –BCLC and Corporate Citizenship                                         26
China and Private Sector Partnerships
Background and Introduction

China is a special case when it comes to interacting with the private sector on developmental issues.
Unlike other countries, it does not yet have an international development agency. This is due to a
combination of factors, not least the still-dominant role of the State in all major economic and commercial
affairs, and a political legacy that traditionally viewed the private sector as a hindrance, rather than a
contributor, to society. So too, its own position, until recent years, as a country preoccupied with its own
developmental needs, and at the receiving, rather than giving, end of development assistance.

However, with the ambitious and rapid and expansion of its overseas aid, trade and investment –
particularly in Africa – there has been some consideration as to the need for a specific agency to manage
overseas development. No consensus has yet emerged, not least because such a move would involve
wresting political territory from ministries and departments with existing vested interests. It also owes
much to the intrinsic nature of the Chinese bureaucracy – large, complex, hierarchical, rife with turf wars,
and as a consequence, very slow moving.

Governance - the current situation

Overseas development in China is channeled in various ways through various ‘Supra-Ministries’ and
other ministries, key of which are:

   The Ministry of Foreign Affairs (MFA)
   The Ministry of Foreign Trade and Commerce (MOFCOM)
   China’s leading import-export bank, EXIM
   China’s leading development bank, China Development Bank (CDB)

There is no central coordinating body governing development support per se, rather, each operating
within its own sphere of influence and interests.

Traditionally, the MFA, through its local embassy presence in other countries, has been viewed as the
most natural starting point for overseas development work, but at a political level, the MFA lacks clout and
resource to drive this agenda, and has less exposure to the private sector. The more powerful ‘supra
Ministry’ MOFCOM, with its responsibility for trade and investment, has traditionally closer links to the
private sector, and the two state-owned banks, EXIM and CDB have been at the forefront of all key
overseas development, aid and infrastructure projects. This reflects China’s own unapologetic approach
to aid and development as a tool to support its political and commercial interests overseas.

Some assistance and training is delivered by relevant line ministries – such as the Ministry of Health
(MoH), and the Ministry of Agriculture.

Recent developments

At the beginning of this year China established the International Poverty Reduction Office (IPPRO). This
office sits directly under the State Council, China’s equivalent of the Cabinet, which gives some indication
of its importance and access to the highest levels of government. In recent months the IPPRO and the
Development Assistance Committee (or DAC – the OECD’s interface with developing countries) have
initiated a China-DAC study group to look at China’s experience on poverty reduction and development,
and China’s impact on poverty reduction in Africa with a view to shaping future policy on China’s
developmental role. As part of this study, four broad themes will be covered as follows:

   The general nature of development partnerships including general development strategy and
    policy, and partnerships with bilateral multilateral donors and NGOs




Partnering for Global Development –BCLC and Corporate Citizenship                                         27
   The role of agriculture in poverty reduction and agricultural policies and institutions and research
    and technology
   Promoting pro-poor growth - the contribution of infrastructure, the role of the private sector and
    harnessing the benefits of trade and investment for poverty reduction
   The environment for enterprise development comprising enterprise development, special
    economic zones and capacity building.

Developmental themes of interest for China

   Poverty reduction – China’s own experience in lifting its own millions out of poverty positions it well
    to be involved on wider efforts overseas.
   Health – programmes largely led by the MoH.
   Agriculture and food safety – China’s own tarnished reputation with regard to food safety has to
    some extent has driven this interest; so too, the legacy and experience of a largely agrarian, rural-
    based population. The UK-China Food Security Action Plan is one forum through which China has
    started to engage on these issues.
   Carbon reduction/climate change – as the largest contributor to CO2 emissions, China is keen to be
    involved at the forefront of debate and initiatives on climate change.
   Other themes – the UK and Chinese governments have established the Sustainable Development
    Dialogues (SDD), a bilateral high-level structured dialogue on sustainable development. Themes for
    2007/8 include: urban development, natural resource management, and sustainable consumption and
    production. It is unclear to what extent the private sector is actively involved in these
    programs/dialogues.

Geographical focus

Given China’s significant interests in Africa, developmental efforts and initiatives with the private sector
are likely to focus here first (for example - the World Bank is understood to be currently conducting some
research with a few Chinese companies on CSR issues in Africa.) However, China’s growing (and
similarly contentious) presence in Latin America may be the next frontier from a private sector
development perspective.




Partnering for Global Development –BCLC and Corporate Citizenship                                          28
Appendix 2: International Development Agencies

Overview of IDAs and their collaborations with the
private sector and corporations




Partnering for Global Development –BCLC and Corporate Citizenship   29
       Agency Overview

                                                                                                                  ODA
                                        Ministry                                                               Commitment       Separate         PPP approach
 Agency       Established                                              Overall Agency Mission                                                                        PPP Budget
                                         Level                                                                 as % of GNI     PPP office         established

AFD                   1941     Ministère des Affaires       Extension of the Agency’s mandate to include             0.39%   No separate           While they do    $17.9 million
                               étrangères                   protection of global public goods, alongside                     office                   not have a    2008 expenses
                               Cabinet du ministre          support to economic growth and the fight                         Staff within        separate office,   (25% of total
                               délégué à la Coopération,    against poverty                                                  Environmental        they have had     budget, second
                               au Développement et à la                                                                      and                    PPP apart of    largest
                               Francophonie                                                                                  Social               their approach    percentage)
                                                                                                                             Support Unit             since 2004
DANIDA                1998     Minister for Development     Development policy is recognized as a central            0.82%   Department for      No information     $3 million but
                               Cooperation                  and integral part of Danish foreign and security                 Business                  provided     does not break
                                                            policy. The government has enhanced the                          Cooperation &                          out
                                                            development effort to prevent and manage                         Technical                              corporations
                                                            violent conflicts, to stabilize and consolidate                  Assistance                             within private
                                                            peace, and to promote reform and                                                                        sector budget
                                                            modernization in developing countries which                                                             1.6% of total
                                                            appear particularly vulnerable to political                                                             budget (2008)
                                                            radicalism and religious extremism.

                           §
DFID                 1997      Led by a cabinet minister    Interests of UK to help poor people build a              0.43%   Business for               January     No information
                               part of UK government, but   better life for themselves.                                      Development                  2009      provided
                               a separate department


DMV                Apart of    Minister for Development     Dedicated to a society in which all people enjoy         0.41%   Not cited                       N/A    No information
                 Ministry of   Cooperation                  the freedom to pursue their own sustainable                                                             provided
                   Foreign                                  development. We contribute to this by
                     Affairs                                strengthening the capacity of local
                                                            organizations.
GTZ                   1975     Separate business            GTZ cooperates with businesses and business              0.38%   Not clear if          PPP program      $128 million
                                                            associations in developing and transition                        separate office     launched 1999      expenditures
                                                            countries.                                                       or program/                            (2008)
                                                                                                                             initiative within
                                                                                                                             an existing
                                                                                                                             office



       §
         Prior to 1997 the United Kingdom’s international aid was managed by the Overseas Development Administration (ODA), a wing of the Foreign and
       Commonwealth Office, and focused on economic development. In 1997, the UK government established DFID, which is headed by a cabinet minister and “it made
       fighting world poverty its top priority.”
       Partnering for Global Development –BCLC and Corporate Citizenship                                                                                      30
                                                                                                                    ODA
                                        Ministry                                                                Commitment          Separate            PPP
 Agency          Established                                            Overall Agency Mission                              **                                      PPP Budget
                                         Level                                                                  as % of GNI        PPP office       established

JICA                    1974   Dept is Director General         Addressing the global agenda                           0.18%    Office for              October   No information
                               level                            Reducing poverty through equitable                              Private Sector            2008    provided
                                                                 growth                                                          Partnership
                                                                Improving governance
                                                                Achieving human security
MCC                     2004   MCC has Board of              A U.S. government corporation designed to                  0.18%    Business                  2004    Does not
                               Directors which includes      work with some of the poorest countries in the                      engagement is                     provide
                               Secretary of State,           world. MCC is based on the principle that aid is                    integrated with                   breakout
                               Secretary of Treasury, U.S.   most effective when it reinforces good                              the overall                       specific for
                               Trade Rep., Administrator     governance, economic freedom and                                    approach.                         private sector
                               of USAID, the CEO of the      investments in people. MCC’s mission is to                          However there                     or corporations
                               MCC and four public           reduce global poverty through the promotion of                      is a Private
                               members appointed by the      sustainable economic growth.                                        Sector
                               President with advice and                                                                         Initiatives Team
                               consent of the Senate
SDC             Federal law    not specified                 Provides humanitarian aid and longer-term                  0.80%    Not cited                 2004    No information
                1976 Federal                                 development cooperation in the South and                                                              not provided
                decree 1995                                  East. Its aim of combating poverty is pursued
                                                             both through direct cooperation with the
                                                             individual countries and with international
                                                             organizations like the United Nations.

SIDA                    1952   Director General              A government agency under the Ministry for                 0.98%    Department of             2009    $4 to $5 million
                               Government agency under       Foreign Affairs. SIDAs goal is to contribute to                     Development                       projected for
                               the Ministry for Foreign      making it possible for poor people to improve                       Partnerships                      2010
                               Affairs                       their living conditions

USAID                   1960   Secretary of the State        Accelerates human progress in developing                   0.18%    Global                    2001    $9 billion of
                               Department                    countries by reducing poverty, advancing                            Development                       combined
                               a part of U.S. government,    democracy, building market economics,                               Alliance (GDA)                    resources are
                               under the State               promoting security, responding to crises, and                                                         for
                               Department                    improving quality of life. Working with                                                               partnerships,
                                                             governments, institutions, and civil society, we                                                      agency does
                                                             assist individuals to build their own futures by                                                      not breakout
                                                             mobilizing the full range of America’s public                                                         corporate
                                                             and private resources through our expert                                                              /private sector
                                                             presence overseas                                                                                     budget




       **
            OECD’s Development Assistance for 2008, http://www.oecd.org/document/35/0,3343,en_2649_34447_42458595_1_1_1_1,00.html

       Partnering for Global Development –BCLC and Corporate Citizenship                                                                                            31
      Engaging the Private Sector
Agency           Private Sector Policy              Private Sector Programs            Where they        Restrictions or      What is included in                Resources
                      Statement                                                         operate           requirements          private sector


AFD        Focus of PPP was on                     The research division of            China         None specified       Not specified,
           establishing local private sector       AFD provides advisory               Thailand                           Discusses partnerships
                                                   services for PPPs between           India                              between itself and others
                                                   developing country                  Indonesia                          as: national, regional and
                                                   governments and firms               Pakistan                           local governments; local
                                                                                       Brazil                             authorities and
                                                                                       Sub-Saharan                        municipalities; international
                                                                                        Africa                             agencies; non-
                                                                                                                           governmental
                                                                                                                           organizations; foundations;
                                                                                                                           private companies;
                                                                                                                           entrepreneurs; and local
                                                                                                                           banks, microfinance
                                                                                                                           institutions and capital
                                                                                                                           markets

DANIDA     The private sector must be               Business-to-Business              Africa (60%   Danish companies     None specified                   IPD: Program for
           involved in development                   Partnerships                       budget)                                                              Innovative Partnerships
           cooperation to achieve the               Innovative Partnerships for       Afghanistan                                                          for Development
           development objectives of the             Development (IPD)                 Asia/Latin                                                           August 2009
           international community – not            DIPP – The Danish Import           America                                                             B2B: Support Facilities
           least to eradicate poverty in all its     Promotion Program                                                                                       in the B2B program
           forms. The importance attributed         Partnership Facility
           to the private sector reflects a          Program
           remarkable shift in the perception
           of its potential. This change in
           outlook has been largely driven
           by globalization exposing
           national differences in labor
           standards, rights and
           responsibilities, while drawing
           attention to the severe social and
           environmental problems facing
           developing countries




      Partnering for Global Development –BCLC and Corporate Citizenship                                                                                             32
Agency           Private Sector Policy          Private Sector Programs            Where they           Restrictions or      What is included in          Resources
                      Statement                                                     operate              requirements          private sector


DFID        Businesses are growth engine:       Pushing Boundaries -            150 countries       None specified       None specified           Business Development
            generates economic                    business practices to             Africa                                                        for The UK Government
            opportunities, introduces             support MDG                       Middle East                                                   working with international
            technology innovation.              Promoting growth -                 Asia                                                          business to achieve the
            Can play role solving major           governments and business          Caribbean                                                     Millennium Development
            global challenges and improve         work together to create the       Eastern                                                       Goals
            the quality of people’s lives         right conditions to                Europe
                                                  encourage business                Latin America
                                                Responsibility - working
                                                  with business and others
                                                  to promote successful
                                                  corporate responsibility
                                                Business Call to Action
                                                  Multi-lateral initiatives to
                                                  engage private sector in
                                                  MDGs
                                                Collaborative: focus on
                                                  tackling inefficiency, poor
                                                  governance and
                                                  corruption.
                                                Private Sector
                                                  Development Strategy:
                                                  beyond CSR agenda to
                                                  identify core business for
                                                  development. It includes
                                                  three pillars - Access,
                                                  Competition and
                                                  Engagement.
DMV         In October 2007, Minister for      Development Cooperation           36 partner          None specified       None specified               Partnership dossier
            Development Cooperation Bert       Focus on                          countries to                                                          Our common
            Koenders presented his new               Security and               improve                                                                concern: Investing
            development policy, ‘Our                  development                governance,                                                            in development
            Common Concern: investing in             Growth and equity          focusing on
            development in a changing                More rights and            human rights and
            world’. The new policy                    opportunities for          a business
            emphasizes more Dutch                     women and girls            climate conducive
            investment in fragile states and         Sustainability, climate    to jobs and good
            in countries which have the most          and energy                 incomes.
            ground to make up in achieving                                       50% of budget
            the Millennium Development                                           goes to Africa
            Goals.



       Partnering for Global Development –BCLC and Corporate Citizenship                                                                                    33
Agency            Private Sector Policy           Private Sector Programs           Where they           Restrictions or          What is included in          Resources
                       Statement                                                     operate              requirements              private sector


GTZ         Public-private partnerships (PPP)     Public-private partnerships   Offices in 87        German and               Companies, trade            The CSR Navigator:
            are development partnerships           (PPP) are development         countries            European companies       associations (need to        Public Policies in
            with the private sector. The           partnerships with the             Africa          and their subsidiaries   check)                       Africa, the Americas,
            partners share all the risks and       private sector.                   Asia                                                                  Asia and Europe
            contributions. Within such            Competitions. Strategic           Latin America                                                        Public Private
            partnerships – also known as           alliances:                        Maghreb                                                               Partnerships –
            development partnerships with         Facility: a financing              Middle East                                                           PPPIdeas
            the private sector – GTZ               instrument for the                Eastern                                                              Competitions
            cooperates with businesses and         promotion of development           Europe                                                                Strategic
            business associations in               partnerships with Africa-         Central Asia                                                         PPP
            developing and transition              based companies.                  Supra-                                                                alliancesInformation
            countries.                            Global Compact:                    regional                                                              Africa Facility
                                                   coordinates the German                                                                                  Sustainable
                                                   Global Compact Network,                                                                                  Development –
                                                   on behalf of the German                                                                                  GTZ's concept
                                                   Federal Ministry for
                                                   Economic Cooperation
                                                   and Development (BMZ)
                                                  CSR: advisor to help
                                                   companies address and
                                                   implement CSR practices
JICA        Developing countries to grow         (1) Trade and investment;       100 office           Not currently            Focus on businesses      Currently being
            their national economies by          (2) tourism; (3) promotion of      Europe           determined but likely                             developed
            utilizing the vitality of domestic   small and medium-sized             Oceania          to primarily focus on
            private enterprise.                  businesses and industrial          Africa           Japanese companies,
                                                 technology; and (4)                Latin America    or companies with
                                                 promotion of peripheral            Asia             some kind of
                                                 industries.                        Middle East      presence/affiliation
                                                                                                      with Japan.
MCC         MCC likens the organization to       Trade and Investment            39 Countries with    None specified           businesses, local and    Private Sector Initiatives
            an investment firm which             Public-Private dialogues        Compacts                                      multi-national           Tool Kit
            rewards performance and              Public-Private collaboration
            results, and because of its focus
            on having the country achieve
            certain milestones before it can
            become eligible for MCC funding




       Partnering for Global Development –BCLC and Corporate Citizenship                                                                                          34
Agency           Private Sector Policy            Private Sector Programs               Where they          Restrictions or          What is included in         Resources
                      Statement                                                          operate             requirements              private sector


SDC         SDC works with a variety of          Supports those countries               Africa          None specified            None specified          Position paper
            partners carefully manages its       where government and civil             Latin America                                                     cooperation with the
            network and favors certain forms     society, at their own                  Asia /SEA                                                         private sector
            of partnerships.                     initiative, make specific                                                                                                April 2004
            Private sector engagement can        efforts to further their
            be traced back to 1976 and           development. Political will
            private sector actors have           exists, but is unable to fulfill
            received support for many years,     certain preconditions,
            SDC has about 1,000 contracts        supports the establishment
            annually with private consultants,   and strengthening of
            organizations and enterprises for    institutional capacities of
            project implementation and           governments and civil
            advice.                              society where the
                                                 preconditions for
                                                 cooperation are absent, a
                                                 federal government edict
                                                 can suspend or break off
                                                 existing relations or not
                                                 establish relations
                                                 Humanitarian aid activities
                                                 are exempt from these
                                                 conditions.
SIDA        Improve and deepen cooperation       Focus area financing and               Africa          Not specifically stated   Businesses              In development
            with Swedish companies. The          cooperation forms, dialogue,           Asia            but website eludes to
            aim is improved conditions for       business information and               Latin           Swedish companies
            poor people and better               competence development                  America
            conditions for Swedish                                                      Europe
            companies and for SIDA to
            achieve results.
            SIDA's role is now to help
            developing countries become
            better procurers and, in different
            ways, stop corruption that can
            lead to unjust procurement.




       Partnering for Global Development –BCLC and Corporate Citizenship                                                                                            35
Agency        Private Sector Policy          Private Sector Programs          Where they         Restrictions or        What is included in             Resources
                   Statement                                                   operate            requirements            private sector


USAID    GDA is USAID's commitment to       Does not fund projects,           Sub-           None, will work with   Private sector partners         Showcase Alliance
         change the way it implements       rather, as the name                Saharan        both U.S. and non–     include corporations,            Database
         assistance. GDA mobilizes the      suggests the focus is about       Africa         U.S. entities          foundations, and                The GDA Report:
         ideas, efforts and resources of    building alliances.               Asia                                  nongovernmental                  Alliances for
         governments, businesses and                                          LA                                    organizations (NGOs) and         Transformational
         civil society by forging public-                                     Caribbean                             provide technical                Development
         private alliances to stimulate                                       Europe &                              leadership for the agency.      The GDA Brochure:
         economic growth, develop                                              Eurasia                                                                Expanding the
         businesses and workforces,                                           Middle East*                                                           Impact of Assistance
         address health and                                                    *most                                                                  Through Alliances
         environmental issues, and                                             funding                                                               GDA Pamphlet
         expand access to education and                                                                                                               Building Alliances
         technology.                                                                                                                                  Series: Sector
                                                                                                                                                      Guides
                                                                                                                                                      Evaluation
                                                                                                                                                     Evaluating Global
                                                                                                                                                      Development
                                                                                                                                                      Alliances: An
                                                                                                                                                      Analysis of USAID’s
                                                                                                                                                      Public Private
                                                                                                                                                      Partnership for
                                                                                                                                                      Development.




    Partnering for Global Development –BCLC and Corporate Citizenship                                                                                     36
Appendix 3: International Development Agency
Contact Information




Partnering for Global Development –BCLC and Corporate Citizenship   37
International Development Agency Contact Information


Agency                   Contact Information
AFD                      General Contact Information
                         5, rue Roland Barthes
                         75598 PARIS Cedex 12
                         France
                         Tel: 33 1 53 44 31 31
                         Fax: 33 1 44 87 99 39

DANIDA                   General Contact Information                IPD Secretariat
                         2, Asiatisk Plads                          Laura Nielsen
                         DK-1448 Copenhagen K.                      Head of Section
                         Demark                                     Tel.: 45 3392 0432
                         Tel: 45 33 92 00 00                        E-mail: launie@um.dk
                         E-mail um@um.dk
                                                                    Marie Wibe
                                                                    Head of Section
                         Business-to-Business (B2B) Program         Tel.: 45 3392 0249
                         B2B Secretariat                            E-mail: marwib@um.dk
                         E-mail: b2b@um.dk
                         Tel.: 45 33 92 02 55
                         Fax: 45 33 92 02 89

DFID                     General Contact Information                Business Call to Action:
                         1 Palace Street
                         London SW1E 5HE                            enquiries@business-call-to-action.com.
                         United Kingdom
                         Tel: 020 7023 0000                         General Business collaborations
                         Fax: 020 7023 0019
                                                                    business@dfid.gov.uk

DMV                      General Contact Information
                         PO Box 20061
                         2500 EB The Hague
                         The Netherlands
                         Tel: 31 70 3486486
                         Fax: 31 70 3484848

GTZ                      General Contact Information                Global Compact and CSR
                         Dag-Hammarskjöld-Weg 1-5                   Constanze Helmchen
                         65760 Eschborn                             Tel: 49 30 72614-204
                         Germany                                    Fax: 49 30 72614-230
                         Tel: 49 6196 79-0                          Email: globalcompact@gtz.de
                         Fax: 49 6196 79-1115

                         Public-Private Partnership
                         Andrea Kolata
                         Tel: 49 6196 79-7377
                         Fax: 49 6196 79-7378
                         Email: ppp-buero@gtz.de




Partnering for Global Development –BCLC and Corporate Citizenship                                            38
Agency                   Contact Information
JICA                     General Information
                         6th–13th floors, Shinjuku Maynds Tower
                         1-1, Yoyogi 2-chome, Shibuya-ku,
                         Tokyo 151-8558
                         Japan
                         Tel: 81 3 5352-5311

MCC                      General Information                        Private Sector Initiatives Team
                         875 Fifteenth Street NW                    875 15th Street NW
                         Washington, DC 20005-2221                  Washington, DC 20005
                         United States                              United States
                         Tel: (202) 521-3600                        Tel: (202) 521-4073
                                                                    Email: psi@mcc.gov

SDC                      General Information
                         Freiburgstrasse 130
                         3003 Berne
                         Switzerland

                         Tel: 41 31 322 34 75
                         Fax: 41 (0)31 324 16 92
                         Email: info@deza.admin.ch

SIDA                     General Information                        Private Sector Partnership
                         Valhallavägen 199                          Maria Stridsman
                         105 25 Stockholm                           Senior Adviser, Team Partnerships
                         SWEDEN                                     maria.stridsman@sida.se
                         Tel: 46 8 698 50 00
                                                                    Ola Nilsmo
                                                                    Senior Adviser, Team Partnerships
                                                                    ola.nilsmo@sida.se

                                                                    Johan Åkerblom
                                                                    Senior Adviser, Team Partnerships
                                                                    johan.akerblom@sida.se

                                                                    Roger Garman
                                                                    Policy Specialist, Team Loans and
                                                                    Guarantees
                                                                    roger.garman@sida.se

USAID                    General Information                        Global Development Alliance
                         U.S. Agency for International              U.S. Agency for International
                         Development                                Development
                         Ronald Reagan Building                     Ronald Reagan Building
                         Washington, D.C. 20523-1000                Washington, D.C. 20523-1000
                                                                    Email: gda@usaid.gov
                                                                    Phone : (202) 712-5341




Partnering for Global Development –BCLC and Corporate Citizenship                                       39
         U.S. Chamber of Commerce
       Business Civic Leadership Center
1615 H Street, NW, Washington, DC 20062-2000
   Phone 202-463-3133 Fax 202-463-5308
          www.uschamber.com/bclc

				
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